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‘VAT will drive prices of fuel, electricty up’

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By Rathindra Kuruwita

The petroleum sector unions warn that fuel prices will rise by around 11 percent from 01 January 2014 due to 18% VAT.

Dr. Ashoka Ranwala, President of the General Employees’ Union of Petroleum Corporation, said previously petrol, diesel and coal had been exempted from VAT.

The prices of petroleum products affected those of other products and services and therefore successive governments had exempted fuel from VAT.

“These products were subjected to the Ports and Airports Development Levy (PAL) of 7.5 percent before. Now, there will be an 18 percent VAT on these products. Soon, there will be an additional cost of about 10.5 percent when fuel is imported from next year. Then fuel prices will surely go up,” he said.

Meanwhile, former Minister and leader of the United Republican Front (URF) Patali Champika Ranawaka told The Island that Sri Lanka was dependent on thermal power generation and the cost of electricity would also increase due to VAT on fuel.

“The government claims that it has increased VAT because of the IMF. However, it is only interested in taxing professionals and increasing indirect taxes. Both will have negative overall impacts on the country,” Ranawaka said.



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Members of the TPA meet with President Dissanayake

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A group of Tamil Progressive Alliance (TPA) members, including its Leader Mano Ganesan, met President Anura Kumara Dissanayake on Thursday  (02) morning at the Presidential Secretariat.

Extensive discussions were held on the issues faced by the Malayagam communities, particularly in relation to education, housing and land, as well as on the urgent measures required to address these concerns. The President paid special attention to all these matters.

Attention was also drawn to the recruitment of qualified Tamil-medium teachers to address the teacher shortage in estate sector schools and this too was discussed at length.

Members of Parliament P. Digambaram and V. Radhakrishnan, along with several other party members, were present at the meeting.

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Lanka secures Russian support with oil supply amidst energy crunch

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Minister of Foreign Affairs, Vijitha Herath, held talks with Deputy Foreign Minister of Russia Andrey Rudenko at the Foreign Ministry, in Colombo, on Thursday (02), with both sides reaffirming their commitment to strengthening bilateral relations.

The Sri Lanka Ministry of Foreign Affairs said the visiting Russian Deputy Minister noted that Russia regarded Sri Lanka as a long-standing friend.

Rudenko assured that Russia stood ready to support Sri Lanka when required, including in the swift supply of Russian oil to help address the current energy challenges, encouraging Russian investors to explore new opportunities in the country and promoting increased tourist arrivals.

He also expressed Russia’s readiness to provide compensation for Sri Lankan war veterans who had lost their lives in the ongoing conflict between Russia and Ukraine.

Minister Herath welcomed Russia’s willingness to assist, emphasising that Sri Lanka valued the support extended by its “old friend”, particularly at a time when the country was facing pressing energy needs.

He noted that the two countries shared nearly seven decades of diplomatic relations and said the present moment provided an opportunity to further strengthen ties, including through long-term trade agreements.

The discussions focused on enhancing cooperation in the fields of energy, investment, tourism and diplomacy, with both sides reiterating their commitment to further deepen the longstanding friendship between Sri Lanka and Russia.

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157 foreigners arrested for engaging in online financial scam from hotel at Iranawila

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Police yesterday arrested 157 foreign nationals in connection with an alleged organised online financial scam, conducted from a hotel in the Iranawila area in Chilaw.

The suspects were taken into custody during a raid carried out by the Police while they were staying at the hotel in Iranawila.

Police said the arrested group included 143 nationals from China, 13 from Bangladesh and one from Vietnam.

Investigators suspect the group had been involved in a coordinated online financial scam, targeting victims through digital platforms.

The suspects are being detained for further questioning while investigations are continuing to determine the full extent of the operation and whether additional individuals were involved.Police said further inquiries are underway.

By Norman Palihawadane

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